Sony Goes All-In On Snoopy, Scoops Up Control Of Peanuts Empire
Sony Group Corp (NYSE:SONY) shares were lower on Friday after the company announced plans to increase its ownership of the iconic Peanuts franchise.
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Sony's music and motion picture units unveiled a major transaction to gain a controlling interest in Peanuts Holdings.
Deal Overview and Ownership Shift
Sony Music Entertainment (Japan) Inc. and Sony Pictures Entertainment Inc. signed a definitive agreement with WildBrain Ltd. to buy WildBrain's roughly 41% stake in Peanuts Holdings LLC.
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Subject to regulatory approvals and other customary conditions, the deal would lift Sony's indirect ownership to about 80%. The family of Charles M. Schulz will retain the remaining 20%.
According to a press release by WildBrain, the deal is worth C$630 million ($457.40 million) in cash.
Subsidiary Role and Operations
Peanuts Worldwide will continue managing the rights and business as a wholly owned unit of Peanuts Holdings.
Sony Music Entertainment (Japan) will lead management of Peanuts Holdings in partnership with Sony Pictures.
Strategic Rationale
Sony first took a stake in the Peanuts business in 2018 and has worked to expand the brand. Executives said Sony's global network and expertise can help grow the franchise.
"We are thrilled to be able to further elevate the value of the ‘Peanuts' brand by drawing on the Sony Group's extensive global network and collective expertise," said Shunsuke Muramatsu, president and group CEO of Sony Music Entertainment (Japan).
"‘Peanuts' is enduring and iconic," said Ravi Ahuja, president and CEO of Sony Pictures Entertainment.
WildBrain's Role
WildBrain said it views Sony as a strong long-term partner for the property. "Sony has been an excellent partner on the ‘Peanuts' brand for many years," said Josh Scherba, WildBrain president and CEO.
Charles M. Schulz introduced Charlie Brown, Snoopy and the rest of the "Peanuts" gang in 1950. The brand now spans shows, specials, merchandise and attractions worldwide.
SONY Price Action: SONY shares are trading lower by 1.43% to $25.54 at publication on Friday.
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Photo: Ned Snowman via Shutterstock